What factors weigh into your company's vehicle purchasing choices?

30 July 2017

Any time you set out to purchase a new vehicle, you need to think carefully about what requirements you have and how much you're willing to pay for them. Your company relies on your ability to get a strong return on investment so establishing a procurement strategy that will be solid and repeatable over the long haul is essential. 

So how do you choose vehicles for your company's fleet?

Considering all the relevant angles

When you're weighing your options for your company's next car purchase, there are some factors that are relatively obvious. You know, for instance, that the price tag and the car's fuel consumption rate merit consideration. But according to the Department of Finance, there are a few other operational requirements that go overlooked.

One is load capacity. How much cargo can you carry in a vehicle at one time safely? This can determine how productive the vehicle will be on a per-hour basis. Additionally, have you considered other environmental factors beyond fuel consumption? For example, according to the Green Vehicle Guide, the average new car in Australia emits CO2 at a rate of 188 grams per kilometre. Can you find vehicles that do better, and help your organisation reach it's corporate social responsibility goals?

Evaluating costs, negotiating prices

Consider the full cost of each transaction you make - not just the immediate hit to your bank account from purchasing a vehicle, but rather the expense of the entire lifecycle. What about insurance, maintenance and so on? This is especially important the case if your business is operating in a larger city, where costs tend to spike higher. For instance, according to RateCity research, the average car insurance policy in Sydney costs $1,134 per year.

Negotiate according to your business plan. According to Bankrate, it's important to calculate these figures early because you can factor them into your cost management plans. If you know exactly how much you can afford to budget for cars over the long haul, you can negotiate with vendors to obtain vehicles at price points that fit your plans.

Using advanced tools for cost management

Cost management becomes easier if you have the right fleet managment system. Using Smartfleet's online tendering system you can fully streamline the acquisition and disposal of your fleet vehicles.

Our easy-to-use module will allow you to set up a tender whenever you need to buy a car. It gives you total control of all bids online, which can help you save up to 15% on the cost of a new vehicle over another software solution. Plus our team of industry experts can help you keep up with industry trends and manage the process expertly and efficiently.

Read more about procuring your vehicles with Smartfleet